Dutch multinational electronics manufacturer Philips has announced a global restructuring involving 4000 employees. There are two main reasons behind the announced job cuts. Firstly, their apnea and respiratory equipment can cause health problems in patients and high claim costs are expected. Secondly, they are currently facing a worldwide shortage of parts pertinent to production processes. Cost increases due to high inflation and the war in Ukraine are cited as also playing a role. In the Netherlands, job cuts consist of 400 forced dismissals and 400 job cuts through a non-renewal of temporary employment contracts and natural attrition. Conditions for job cuts in America are still being finalised.
During 2022, two restructuring events at Philips have been recorded in the ERM events database. 106 job cuts in July due to offshoring activities (Philips-2022-NL), and 400 job cuts in the Netherlands as part of a global restructuring (Philips-2022a-NL).